As part of the virtual event ‘Launch of the Mozambique Country Focus Report’, held this Wednesday, 31 July, Flavio Soares da Gama, representative of the African Development Bank (AfDB) in Mozambique, stressed the urgent need to mobilise 1 trillion and 17 billion meticais (16.1 billion dollars) by 2030 to tackle the country’s growing climate challenges.
Flavio Soares da Gama’s speech was structured into three main parts: analysing Mozambique’s economic performance in 2023, the need for structural transformation and the financing of this transformation, along with the urgency of reforming the global financial architecture.
In his presentation, the economist was keen to emphasise that despite economic growth of 5% in 2023, driven mainly by the extractive industries and private consumption, Mozambique continues to face significant economic challenges. ‘The country faces a persistent fiscal deficit and a current account that, despite some improvements, still requires rigorous attention,’ said Flavio Soares da Gama.

In addition, the AfDB representative emphasised ongoing concerns about debt sustainability and the persistence of poverty, which affects more than 24 million Mozambicans. He also emphasised that job creation has been insufficient to keep up with demographic growth, with the employment rate falling to 73% in 2020.
For the following years, Flavio projected average growth of 5.2 per cent for 2024-25, with the extractive sector leading this growth.
However, he warned of the associated risks, such as fiscal limitations due to high indebtedness and possible adverse impacts on foreign investment. ‘The high level of indebtedness and fiscal constraints could restrict the ability to attract foreign investment necessary for continued development,’ he warned.
Among the recommendations made, Flavio Soares da Gama emphasised the need for the government to use natural gas revenues to expand socio-economic infrastructure, implement reforms for economic diversification and strengthen debt management. ‘It is essential to strengthen human capital and improve infrastructure in order to accelerate the necessary structural transformation,’ said the economist.
‘The high level of indebtedness and fiscal constraints could restrict the ability to attract foreign investment necessary for continued development’
The event was also marked by the launch of 54 country focus reports by the African Development Bank, which assess the experiences of various countries in accessing finance for structural transformation. These reports highlight the shortcomings of the current global financial system and offer recommendations in five key areas to improve support for these transformations.
Flavio Soares da Gama’s speech ended with a call for the urgent need for a strong mobilisation of resources, both internal and external, to ensure that Mozambique can effectively face the climate and economic challenges ahead.